A factor who charges the factor’s principal with a guaranty commission upon a sale thereby assumes absolutely to pay the price when it falls due as if it were a debt of the factor’s own and not as a mere guarantor for the purchaser, but the factor does not thereby assume any additional responsibility for the safety of the factor’s remittance of the proceeds.

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Terms Used In North Dakota Code 3-06-05

  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC